Affordable Health Insurance Options During Temporary Unemployment

Losing job-based health insurance can be stressful, especially when you’re expecting a gap in coverage. The Affordable Care Act (ACA) provides valuable options for individuals and families who find themselves in this situation. Here’s a breakdown of your potential choices:

COBRA

COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that allows employees to continue their employer-sponsored health insurance for up to 18 months after losing their job. However, COBRA premiums are typically higher than what you paid as an employee, as they cover your portion of the premium as well as the portion your employer used to pay. In your case, the COBRA premiums would likely be around $2,000 per month, which can be a significant financial burden.

ACA Health Insurance Marketplace

The ACA established health insurance marketplaces, such as Covered California in your state. These marketplaces allow individuals and families to purchase health insurance plans directly from private insurers. ACA plans offer a range of coverage options and premiums, and they provide financial assistance to those who qualify.

Eligibility and Enrollment

To be eligible for an ACA plan, you must not be eligible for other health insurance, such as COBRA or Medicare. The open enrollment period for ACA plans typically runs from November to January each year, but special enrollment periods are available for those who experience certain life events, such as losing their job.

Financial Assistance

ACA plans offer financial assistance to eligible individuals and families in the form of tax credits and premium subsidies. These credits and subsidies can significantly reduce the cost of health insurance premiums, making them more affordable. To qualify for financial assistance, your household income must be below a certain threshold.

Covered California

Covered California is the ACA health insurance marketplace in California. To explore your ACA options, you can visit their website at https://apply.coveredca.com/lw-shopandcompare/ and enter your information. You can preview the cost of available plans and apply for coverage.

Other Considerations

When selecting an ACA plan, it’s important to consider factors such as monthly premiums, deductibles, out-of-pocket maximums, and covered services. You should also check the yearly out-of-pocket maximum on any plan you’re considering.

Conclusion

If you and your spouse will be without job-based health care for a month or two, the ACA health insurance marketplace is likely your best option. By exploring your options on Covered California, you can find a plan that meets your needs and budget. Seeking assistance from a licensed health insurance agent can also provide you with valuable guidance and ensure you make an informed decision about your health insurance coverage.